Residential delinquencies jumped by almost 8% in September from the month prior, the biggest increase since 2008, according to new figures compiled by Lender Processing Services.

Traditionally, delinquencies rise in September and while this year’s increase is large, LPS says the figure needs to be viewed in the proper context.

LPS Applied Analytics senior vice president Herb Blecher said the overall trend is one of improved delinquencies, noting that late payments are still down 30% from January 2010.

"September was notable in its short duration of business days and virtually all transactional or operational metrics we observed declined in volume for the month,” he said. “Foreclosure starts, foreclosure sales, delinquent cures and loan prepayments all dropped from their August levels. It is important to note that we also saw the percentage of redefaulting modifications contributing to the delinquency rate actually declined from the month prior."

LPS also found that originations in August (it takes one month for information to come into its servicing system) rose 13% month-over-month and 42% year-over-year, the highest reading since 2009.

The figures show that high loan-to-value ratio Home Affordable Refinance Program originations made up nearly one-quarter of August’s volume.